Distributing an estate - income tax

poseidon1

Savvy_Sue said:

The thing is, the tax positions of the various beneficiaries is their business, not yours as executor. 

Your job is to report and distribute. Theirs is to make a true return to HMRC.

Some what harsh, bearing in mind he is evidently related to the beneficiaries and in any event quite in order for them (collectively) to organise  expectant entitlements under the will as tax efficiently as the law permits.

Certainly no harm exploring reasonable options, afterall it remains respected judicial law that;

' No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as to enable the Inland Revenue to put the largest possible shovel in his stores.

"The Inland Revenue is not slow and quite rightly, to take every advantage which is open to it under the Taxing Statues for the purposes of depleting the taxpayer's pocket. And  the taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue."
      Lord Clyde in Ayrshire Pullman Motor Services v CIR (1929) 14 TC  754

Bobziz

poseidon1 said:

Savvy_Sue said:

The thing is, the tax positions of the various beneficiaries is their business, not yours as executor. 

Your job is to report and distribute. Theirs is to make a true return to HMRC.

Some what harsh, bearing in mind he is evidently related to the beneficiaries and in any event quite in order for them (collectively) to organise  expectant entitlements under the will as tax efficiently as the law permits.

Certainly no harm exploring reasonable options, afterall it remains respected judicial law that;

' No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as to enable the Inland Revenue to put the largest possible shovel in his stores.

"The Inland Revenue is not slow and quite rightly, to take every advantage which is open to it under the Taxing Statues for the purposes of depleting the taxpayer's pocket. And  the taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue."
      Lord Clyde in Ayrshire Pullman Motor Services v CIR (1929) 14 TC  754

Hat tip to Lord Clyde, that is an enjoyable turn of phrase.

mybestattempt

Savvy_Sue is correct.
 
To be clear, Lord Clyde did not make judicial law with those remarks.

What he said is obiter dicta, they are comments made in passing.

Ratio decidendi, relating to the crucial facts and specific legislation of a particular case sets binding legal precedent.

Savvy_Sue

I'm sorry you think it's harsh. When I was in a similar position (admittedly with a tiny amount of income arising post death) I didn't consider it necessary to ask my siblings about their taxpaying status. One of them asked for a certificate, I provided it to all.

poseidon1

Savvy_Sue said:

I'm sorry you think it's harsh. When I was in a similar position (admittedly with a tiny amount of income arising post death) I didn't consider it necessary to ask my siblings about their taxpaying status. One of them asked for a certificate, I provided it to all.

Executors are entitled to differ as to how far they wish to be of service to the needs, circumstances and wishes of the beneficiaries. Deeds of variation, Will disclaimers and other tools to reorganise beneficial  entitlements would not exsist otherwise.

Certainly some executors will prefer a more passive approach to their duties and obligations ( it can be a thankless job after all ), others to be more proactive depending on the extent of their knowledge of legal options , possibilities and appreciation of beneficiary's  personal circumstances. Each to their own.